A company has two divisions: Division X and Division Y. Both divisions are profit centres. Division X can produce up to 143667 kilograms of plastic per year. Division Y needs 50717 kilograms of plastic in order to manufacture different products. The market price is $5.10 per kilogram of plastic. The following costs pertain to Division X:

Variable manufacturing costs per kilogram	$3.31
Fixed manufacturing costs per kilogram	8.08

What is the minimum transfer price that Division X would be willing to receive for the 50717 kilograms sold to Division Y if Division X expects to have excess capacity this year?

Select one:

a. $3.31

b. $11.39

c. $8.08

d. $5.10